Global Food Security Crisis Worsens Amid Inflation and Trade Restrictions: World Bank

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Global Food Security Crisis Worsens Amid Inflation and Trade Restrictions

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Food security remains a significant challenge in many low-income countries, particularly in Africa. An estimated 61.6 million people in East Africa are facing food insecurity, while nearly 50 million people in Western and Central Africa are expected to experience severe hunger. The primary causes of food insecurity continue to be conflicts and climate change, which disrupt food production and distribution systems.

Rising Food Prices Affecting Vulnerable Nations

Inflation in food prices remains high across various income groups. Between October 2024 and January 2025, food price inflation exceeded 5% in 73.7% of low-income countries, marking an increase from the previous report in January. In lower-middle-income countries, food price inflation rose to 52.2%, while 38% of upper-middle-income countries and 5.6% of high-income countries also reported significant price hikes.

In 56% of the 164 countries with available data, food price inflation outpaced overall inflation, making it more difficult for households to afford basic necessities.

Agricultural and Commodity Prices Fluctuate

Agricultural and export price indices have increased since the last update in January 2025, with a 3% rise in agricultural prices and a 6% rise in export prices. Maize and wheat prices closed 3% and 5% higher, respectively, while rice prices fell by 10%. Compared to the pre-pandemic period of January 2020, maize prices are 27% higher, wheat prices 2% lower, and rice prices 14% higher.

According to the February 2025 Agricultural Market Information System (AMIS) Market Monitor, global prices for wheat, rice, and soybeans have dropped compared to last year, except for maize, which has reached a 15-month peak due to supply concerns.

Limited Funding for Food Security Initiatives

The 2024 Financing Flows and Food Crises report revealed that only 3% of total development funding (USD 6.3 billion) is allocated to the food sector. In contrast, global humanitarian assistance receives 33% of total funding (USD 10.3 billion).

The World Bank’s Global Economic Prospects report (January 2025) warns of economic stagnation, projecting a 2.7% global growth rate through 2026. High inflation, rising debt, and trade disruptions continue to worsen food insecurity, especially in low-income nations.

Trade Restrictions Contributing to Food Crisis

Since Russia’s invasion of Ukraine, an increasing number of countries have implemented trade-related policies, limiting food and fertilizer exports to protect domestic supply. As of February 2025, 17 countries have enacted 22 food export bans, while eight countries have introduced 12 export-limiting measures. These restrictions have further strained global food supply chains, leading to higher prices and food shortages in vulnerable regions.

Global Efforts to Address Food Insecurity

The World Bank is actively working to address food insecurity through various initiatives. Its food and nutrition security portfolio spans across 90 countries, benefiting approximately 296 million people through short-term assistance and long-term agricultural resilience programs.

Some key projects include:

Honduras: Rural Competitiveness Project (COMRURAL II and III) is supporting 6,287 small-scale producers with market connections and improved agricultural techniques, creating 6,678 new jobs.
Malawi: A $95 million Agriculture Commercialization Project to boost agricultural value chains and crisis response.
Madagascar: A $200 million grant for water supply improvements and food security resilience in drought-prone regions.
Burkina Faso, Chad, Mali, Mauritania, Niger, and Senegal: The $175 million Sahel Irrigation Initiative is helping 130,000 farmers improve irrigation and increase agricultural productivity.
Central African Republic: The $50 million Emergency Food Security Response Project has provided 329,000 smallholder farmers with seeds, tools, and training to boost crop production.
West Africa: The $766 million Food Systems Resilience Program is working to enhance food security by investing in digital advisory services, agricultural adaptation strategies, and regional food market integration.
Egypt: A $500 million Emergency Food Security and Resilience Support Project aims to ensure uninterrupted bread access for vulnerable households and strengthen food crisis resilience.
Jordan: A $125 million project is helping improve agricultural climate resilience, competitiveness, and long-term food security.

Global Food Security Alliance and Policy Actions

The World Bank Group and G7 Presidency launched the Global Alliance for Food Security in May 2022 to coordinate international responses to the hunger crisis. The initiative introduced the Global Food and Nutrition Security Dashboard, which provides real-time data to help decision-makers formulate policies and financial solutions.

In a joint statement on February 8, 2023, the heads of the FAO, IMF, World Bank, WFP, and WTO called for urgent actions to:

Prevent worsening hunger hotspots
Facilitate trade and market improvements
Reform harmful subsidies

These leaders stressed the need to balance short-term crisis interventions with long-term agricultural resilience efforts to combat the growing food insecurity crisis worldwide.